The long-delayed amendments to the Prevention of Illegal Eviction from and unlawful occupation of Land Act (PIE Act) of 1998, has finally been published in the Government Gazette for public comment, says Bill Rawson, Chairman of Rawson Properties.
These amendments seek to free private residential landlords and banks from the full rigours of the PIE Act, after the Appeal Court ruled in August 2003 that the Act, which previously only applied to illegal squatters, should also apply to evicting tenants. As a result of this, a landlord may not lawfully evict a tenant from his premises unless he obtains a court order to authorise the eviction.
Rawson says that a memorandum on the objects of the Bill, attached to the Government Gazette published on 22 December last year, states that the intention of the original Act was to cover only those persons who unlawfully invade land without the prior consent of the landowner or person in charge of land, and never to tenant and mortgagors who default in terms of their prior agreements with landlords and financial institutions.
'In terms of proposed amendments to other legislation, the Rental Housing Act of 2002, landlords will also no longer need a court order to get an eviction, as the Rental Housing Tribunal has now been given the authority to grant eviction orders after a hearing. This will mean that landlords will now no longer need to pay legal fees in order to evict defaulting tenants, a considerable improvement,' says Rawson.
According to Rawson these proposed amendments will serve as an encouragement to investors to invest money in buy-to-let property. 'Many have been understandably cautious of this investment opportunity, as they didnt want to be stuck in a situation where a defaulting tenant is staying in their property and refusing to move.
'With rising interest rates and the increasing cost of property, this could make more letting units available on the market and thus serve to address the housing shortage in South Africa'
